The EU Emissions Trading Scheme (ETS) is a world first and a major weapon in Europe's fight against climate change. The innovative system has turned carbon dioxide emissions into a tradeable commodity. They can now be bought and sold like any other of the thousands of products traded on world markets today.
The scheme works by placing a limit or a 'cap' on the amount of carbon dioxide participating installations - currently around 10,500 across the European Union - can emit every year. If an installation emits more than its allowance, it must either pay a very hefty fine or buy surplus allowances from companies that have managed to stay below their limit. The system ensures that overall CO2 emissions from the plants covered are cut in the most cost effective way.

The European Commission is proposing legislation to bring the aviation sector into the European Union's pioneering emissions trading scheme (EU ETS) in order to control the rapid growth in CO2 emissions from air travel. Until now airlines have not been subject to the constraints on energy consumption or greenhouse gas emissions that other businesses have to live with. Emissions from domestic flights are covered by the Kyoto Protocol's emission targets for developed countries, but international aviation - which makes up the vast majority of flights - is not. In addition, jet fuel for international flights has historically been exempted from taxation. Hence the need for policy action.

In the past 100 years, the number of cold and frost days has decreased in most parts of Europe, whereas the number of days with temperatures above 25°C and the number of heatwaves have increased. The frequency of very wet days has significantly decreased in recent decades in many places in southern Europe, but increased in mid and northern Europe. Cold winters are projected to disappear almost entirely by 2080 and hot summers are projected to become much more frequent. This will have a continuing effect on mountain regions. For every 1°C increase in temperature, the snowline rises by 150 metres. And by 2050, three-quarters of today's glaciers in parts of the Alps are expected to have disappeared.
Source: State of the Environment Report No 1/2005 "The European environment - State and outlook 2005" (published 29 Nov 2005)

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It is estimated that, as global warming proceeds, regions currently receiving snowfall will increasingly receive precipitation in the form of rain. For every 1ºC increase in temperature, the snowline rises by about 150 metres. As a result, less snow will accumulate at low elevations. As a consequence, nearly half of all ski resorts in Switzerland, and even more in Germany, Austria and the Pyrenees, will face difficulties in attracting tourists and winter sport enthusiasts in the future.
Source: EEA Report No 2/2004 "Impacts of Europe's changing climate" (published 18 Aug 2004)

Today the European Union has the most environmentally friendly arsenal of rules in the world and has done more to tackle pressing ecological problems, such as climate change, than any other major power.
But it has not always been like this. Caring for the environment did not feature in the Treaty of Rome, the document that gave birth to the modern day EU. Yet environmental problems were never far away. Europe’s love affair with the car was moving into top gear, industry was busy belching out pollutants and raw sewage was being pumped into our rivers and seas.

Road transport generates about one fifth of the EU's CO2 emissions, with passenger cars responsible for around 12%. This makes it the second most important source of greenhouse gases. Although there have been significant improvements over recent years in vehicle technology, these have not been enough to neutralise the effect of increases in traffic and car size.

The period from 2004-2013 was the warmest decade on record in Europe. Many other changes significant for Europe have been observed across the climate system, including warming oceans, rising sea level and shrinking snow cover, ice sheets, sea ice and glaciers.